The AUD/USD is trading into 0.7660 following GDP figures that came in positive, printing better than expected at release.
The Aussie fell in Tuesday’s trading, hitting a low of 0.7595 before rebounding as market sentiment began to improve in early Wednesday’s action as US Treasury Secretary Steven Mnuchin revealed he’s been attempting to secure an exemption for Canada from the US’ recent steel and aluminum tariffs, which market participants are taking as a sign that key personnel in the Trump administration are beginning to balk at protectionist measures.
Australian GDP came in at 3.1% for the first quarter of 2018, above the 2.8% forecast, and the Aussie is bidding higher on reaction, climbing into a new high for the week as AUD bulls revel in the first significant reading of positive data for the Australian economy after a run of middling to disappointing data in recent months.
AUD/USD levels to watch
Tuesday’s bounce from the day’s low at 0.7595 sees the pair back into the 0.7600 range after falling from the day’s high at 0.7655, and as FXStreet’s own Valeria Bednarik noted, the technicals are currently leaning towards more bullish action: “the 4 hours chart shows that the risk remains skewed to the upside, as the pair bounced from a bullish 20 SMA, while technical indicators have recouped their upward slopes within positive territory. Furthermore, the pair managed again to settle above the 50% retracement of its latest daily slump at around 0.7615, the immediate support.